The condensed consolidated interim financial statements of Sýn hf. for the first half of 2021 were approved by the Board of Directors on September 1, 2021.
• Revenues for the second quarter (Q2) of 2021 amounted to ISK 5,289m, a decrease of ISK 98m compared to the same period in 2020. Revenues for the first half (1H) 2021 amounts to ISK 10,289m, a decrease of 1.2% compared to H1 2020. This decrease can be mainly attributed to a decrease of 650M in Endor’s turnover.
• EBITDA for Q2 2021 amounted to ISK 1,488 million, compared to ISK 1,364 million in Q2 2020. The EBITDA margin was 28.1% in Q2 2021 compared to 25.3% in Q2 2020. EBITDA at 1 H 2021 amounts to 2,876 M ISK, or 5.8%. increase compared to the same period in 2020.
• The loss in Q2 2021 was 117M ISK compared to 60M ISK in Q2 2020. The loss for 1H 2021 was 348M ISK compared to 410M ISK in 1H 2020. A loss of 179M ISK was recognized in 1H 2021 in connection with the sale of the Company’s share in its Faroese partner Hey.
• Cash generated by operations in Q2 2021 amounted to ISK 1,431 million compared to ISK 1,744 million in Q2 2020, a decrease of 18%. Cash generated by operations in H1 2021 amounted to ISK 1,975 million compared to ISK 2,799 million in HK 1 2020, a decrease of 29%.
• Total investments in H1 2021 amounted to ISK 643 million, of which ISK 592 million in tangible and intangible assets (excluding broadcasting license fees) and ISK 1,117 million in broadcasting license fees. The proceeds from the sale of Hey, the Company’s Faroese partner, amounted to ISK 1,065 million.
• The negative cash flow from financial activities for H1 2021 amounted to ISK 1,748m compared to ISK 1,445m in HK 1 2020. The proceeds from the sale of Hey were used to repay debt and reduce lines credit.
• The equity ratio was 28.5% at the end of H1 2021.
• On March 31, an agreement was signed for the sale of passive infrastructure in the Company’s mobile network. The sale is expected to be approved by the competition authority in the coming days. The proceeds will be used in part to repay debt, buy back shares and new investments.
Heiðar Guðjónsson CEO:
“Our core business continues to improve as evidenced by the increase in free cash flow (ISK 1,611 million), which in my opinion is the best indicator of our performance. Free cash flow has been completely transformed from the years 2018 and 2019 (ISK -143M and ISK 720M).
This is the first quarter since 2018 that we have recorded growth in our telecommunications business. Last year I said that we will use our networks more efficiently and that this growth is not driven by increased investment. We have gained many subscribers in our media business and seen an increase in advertising sales. By making Stöð 2 exclusively available to subscribers, we’ve seen an increase in subscriptions by the thousands with little impact on ad revenue. Stöð 2 Sport and Stöð 2+ have never been so popular. Vísir, our web portal, continues to increase its lead over other media every week. We are currently developing new content behind a paywall on Vísir, for example Blökast and a new commercial medium of which Hörður Ægisson and Ólöf Skaftadóttir are editors. Vísir has great potential to become a central gateway for Icelandic content and services.
Endor’s revenue fell by $ 650 million in part due to the pandemic, but the long-term outlook for the company is good. The pandemic is having less and less impact on our business.
Our biggest investment in recent quarters has been in our IT systems which made the Fjölskyldupakki offer possible at the end of the first quarter. We will be launching exciting new products in the coming quarters as our reach is large, with half of households holding subscriptions to our products and almost half of all businesses.
We are awaiting approval from the ICA for the sale of passive infrastructure in our mobile network, which we expect in a few days. The proceeds will be used in part to repay debt, but also to buy back shares and new investments. “
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